How the Real Crash Was Avoided

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Posted by: briansittley Comments: 0 0 Post Date: December 18, 2009


Newsweek writer Fareed Zakaria recently opined as to how and why, despite the pains of this recession, we managed to avoid the greater calamity of a major global Depression, as predicted by many a pundit and prognosticator not too very many months ago.

In the December 21 issue of Newsweek, he makes the point that at the heart of it “the global economic system is inherently more resilient than we think.”  Supporting his claim, he notes that “the world today is characterized by three major forces for stability, each reinforcing the other and each historical in nature.”

You can read the entire article here, and see if you concur. 

The gist of Zakaria’s argument is that those three major forces today are (1) the spread of great super-power peace, which has dramatically ratcheted downward most global political tensions among the great powers… (2) largely winning the decades-long struggle against inflation on a global basis (in most countries) and its deep social and political consequences… and (3) technological connectivity, and the fact that the “information revolution” has created a much more deeply connected global system.

His point being… despite how bad it is, it could have been a lot worse, and lessons since the 30’s have been learned, albeit painfully.  And once again, Tech is a trump card.  Read the article, and take your own measure.

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